Page 52 - ELT_3rd_1st May 2020_Vol 372_Part

A110 EXCISE LAW TIMES [ Vol. 372

“In the US already, there is a huge demand for products like ventilators.
Manufacturing is also shut in Ireland, and Germany doesn’t seem far off. Would
these companies be able to make enough to send to India as well?” the person
said. “The duty reduction on components might help though,” the Executive
added.
“How does this import duty juggling make a difference if the Govern-
ment is the one buying the ventilators? The Government levies the duties and
gets the same back, whether it is zero per cent. or 15 per cent. For PPEs and other
items, it may help the public India is publicly admitting that our ‘Make in India’
that was hyped so much for many years hasn’t yielded any result and we have to
import critical goods, be it during normal days or during a crisis,” said
Vishwaprasad Alva, Managing Director, Skanray.
“AiMeD strongly protests this. This is a repeat mistake that has led to
India already becoming so import dependent on medical devices. The weakness
of the Indian medical system is well known to all. ... Had the Indian medical
device industry been more stronger and robust and well-protected, the manufac-
turers of masks and PPE kits would have been more modernised, more automat-
ed and better placed to ramp up capacities,” said Rajiv Nath, Forum Coordina-
tor, Association of Indian Medical Devices Industry (AiMeD).
At present, the basic Customs duty on some of the medical devices such
as ventilators is 7.5 per cent. Meanwhile, an empowered group of the Govern-
ment has been trying to help domestic manufacturers of PPEs and masks to boost
their production. The companies are attempting to boost their capacity from
1.10 lakh to 1.35 lakh units per day, said a senior Government official close to the
development.
“The requirement is more, so the Government has also been arranging
for imports. It is coming from different countries, wherever there is availability,”
the official said.
India has long been dependent on imports for most of its medical devic-
es. For instance, the average demand for ventilators in India is around 8,000 piec-
es a year. Of this, only 10 per cent. is manufactured and supplied in the country.
With the number of COVID-19 cases rising, the country might need anywhere
between 1.10 lakh-2.20 lakh ventilators by May 15, in the worst case scenario,
according to an analysis by think tank Brookings India.
[Source : The Indian Express, New Delhi, dated 10-4-2020]

Arrears’ collection will be tricky
The COVID-19 crisis is yet to play out completely. However, the focus
will soon shift to the Government’s Revenue collection efforts. And the Vivaad se
Vishwas Tak scheme will be one area where some much-needed revenue can be
collected by the Government. The scheme can be more successful if some specific
steps are taken. But first, we need to understand the nature of the astronomical
tax arrears’ figure of ` 9 trillion.
Typically an Income Tax Officer makes a “high pitched” assessment or-
der based on some weird interpretation of the existing law. This results in a very
high tax demand (say ` 2 crore). The taxpayer has to pay ` 40 lakh (20 per cent.)
immediately, and the balance 80 per cent. is kept on hold till the appeal is decid-
ed.

EXCISE LAW TIMES  1st May 2020  52